14 January 2008
New obstacles have emerged to a potential rescue takeover of
Northern Rock as trustees of the final salary pension scheme
revealed a £100 million fund deficit.
This could delay any rescue plan by would-be-bidders for
Northern Rock with the prospect of having to find additional
capital to plug this funding gap.
It might also place the pension fund trustees in a more powerful
role, where they could exercise substantial sway over any agreement
between Northern Rock, the Government and potential bidders on
clinching a rescue package.
